Pablo Isla will be entitled to compensation equivalent to two fixed salaries after leaving Inditex on March 31st. Both the president until now and the person who has held the position of CEO, Carlos Crespo, who continues in the company, have the right to receive a gross compensation for an amount equivalent to two annuities, calculated on their respective fixed remuneration established for the year ongoing in the cases in which their contracts are terminated by the unilateral will of the company due to the resignation of the executive chairman or the chief executive officer.
Since Isla, as Inditex acknowledges in the relevant event sent to the CNMV on November 30, presented its “resignation”, it is entitled to receive compensation of 3.25 million euros, its fixed remuneration in the last two years, which brings the total amount to 6.50 million euros. Nevertheless, You can also collect an accumulated pension of 9.05 million euros. Isla resigned six years ago to make new contributions, but has that amount still pending as reflected in the company’s documentation.
Clause
However, and as stated in the Group’s Remuneration Policy Report, You will not be able to work for a competing company for at least two years. Specifically, this report states that “with respect to the post-contractual abstention pact, and for all members of the Board of Directors regardless of their type, article 24.3 of the Board of Directors Regulations provides that the director who terminates his mandate or for any other reason ceases in the performance of his position will not be able to provide services in another entity that has a corporate purpose analogous to that of the Company for a period of two years “.
Apart from the compensation and the non-competition clauses, Pablo Isla leaves Inditex through the big door, leaving a much more valuable company than the one he found back in May 2005 when he was appointed CEO. Since then the market value of the textile giant has multiplied by seven, or what is the same, is worth almost 80,000 million euros more. When Isla joined the company, it was worth slightly less than 13,000 million euros on the stock market. and has announced its departure when it exceeded 92,000 million.
Isla has, on the other hand, as it has declared before the CNMV, 0.063% of the company’s capital, which is equivalent to 55.7 million euros at the end of Thursday. In addition, there are two long-term incentive plans -one effective from February 1, 2019 to January 31, 2022 and another from February 1, 2020 to January 31, 2023-, for which you will receive 87,291 shares in the first case and 65,010 shares in the second. At yesterday’s prices, these 152,301 shares in total would add up to 4.3 million.
Each plan also includes a cash amount of 1.36 million, which amounts to 5.7 million euros.
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